Vodacom Group is in discussions with the Kenyan government about potentially acquiring a portion of its 35% stake in Kenya’s telecommunications giant, Safaricom PLC.
According to sources who spoke to Bloomberg, the Johannesburg-based company, which already owns approximately 39.93% of Safaricom, is reportedly considering increasing its share, though no final decisions have been made.
The new developments come amid ongoing debate over whether to break up Kenya’s most valuable company into separate entities for telecommunications, mobile money, and infrastructure units.
National Treasury Cabinet Secretary, John Mbadi, disclosed in August that the government was evaluating a breakup of Safaricom into three units comprising telecommunications, towers, and M‑Pesa, as part of a strategic review that could reduce its 35% stake.
Vodacom rejects plan to split M-Pesa from Safaricom
However, Vodacom last week resisted moves to spin off M‑Pesa, with CEO Shameel Joosub saying during a November 11 earnings call that M‑Pesa’s financial services are too deeply integrated with its telecom operations to justify a separation.
“We’re not looking to separately list the financial service businesses; we do see it intricately linked to our value proposition that we’re providing to the customer. In fact, we see it becoming even more closely linked, coupled with loyalty going forward.”
Also Read: Safaricom to Roll Out New M-PESA Features After Fintech 2.0 Upgrade
Earlier this week, Starlink, Elon Musk’s satellite internet company, signed a deal with Vodacom to expand high-speed broadband access and strengthen rural network coverage across Africa. Announced on November 12, the partnership aims to accelerate digital inclusion and support economic growth.
The collaboration will integrate Starlink’s satellite backhaul into Vodacom’s mobile network, improving performance in underserved regions and extending connectivity to remote schools, health centres, and communities. Vodacom will also become an authorized reseller of Starlink equipment and services for enterprise and small-business clients.
“We are delighted to collaborate with Starlink, a move that accelerates our mission to connect every African to the internet. Low Earth orbit satellite technology will help bridge the digital divide where traditional infrastructure is not feasible, and this partnership will unlock new possibilities for the unconnected,” Joosub said highlighting that the partnership aligns with Vodacom’s Vision 2030 strategy.
Starlink partnership to expand connectivity
The company plans to tailor packages to suit affordability needs across African markets and support a wide range of industries, including mining, oil and gas, agriculture, tourism, retail, and financial services.
Also Read: Safaricom Cleared by CMA to Roll Out KSh 40 Billion Fundraising Bond
Products include pay-as-you-use backup internet, “unbreakable” internet options, device-as-a-service models, and branch network pooling. Vodacom expects Starlink to complement its existing 4G, 5G, fibre, microwave, and satellite infrastructure.
“Starlink is already serving people, businesses, and organizations in 25 African countries. By collaborating with Vodacom, Starlink can deliver reliable, high-speed connectivity to even more customers, transforming lives and communities across the continent,” Starlink’s vice president for operations Chad Gibbs said.
The agreement comes months after Safaricom initially opposed Starlink’s entry into the Kenyan market. The telecom wrote to the Communications Authority of Kenya (CA) in July 2024, expressing concerns about granting independent licenses to satellite internet providers. Safaricom later announced it was open to partnership discussions with Starlink.
“From a satellite perspective, we have to partner with Starlink or other satellite providers in the future to make sure that the technology plays right through. We have had some discussions, and we will continue to have those discussions to the extent that they complement what we are offering,” CEO Peter Ndegwa told Bloomberg.
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